Interest Rates and Housing Prices
Rates are still holding at historically low rates. 3.5% VA and FHA loans for 30 year fixed rate loans, 3.75% for conventional 30 year and 3.125% for 15 year loans. Adjustable rate loans are actually higher in the 3.75% range.
The federal reserve has stopped their monthly huge asset purchases to hold down rates and help the economy. They feel that the economy is strong enough to work on it's own in the "FREE" market. What will this do to loan costs in the future. Expect not much till the spring but there is a good case being made that rates are way to low and should rise after the Mid-term elections and the start of 2015. Last quarter GNP rose by 3.5% and has risen all but two months of the last two years which says the market is ready for higher rates and less help from the government.
House prices in the Grand lake area are steady but in some cases still not as high as they were be fore the financial crises of 6-7 years ago. Sales units are up around 5% and the average price of homes sold is slightly higher than a year ago. Our biggest problem on the lake is homes in the $200,000 to $400,000 range that have not been updated in the last ten years and homeowners are disappointed that they may not be worth what they were valued at when they bought them.
Buyers expect deep discounts for dated homes or they expect the homes to have all the latest amenities if the seller expects top dollar.
For more information on Grand Lake real estate call "SHORTY" at 918-218-6011.
Wayne "SHORTY" Short
RE/MAX Grand Lake